I would argue that if you have no minimum wage, then in a system that has unemployment, this will allow employers to drive wages down. An employer in general has zero interest in the standard of living of his employees, rather they just want to get a job done for the lowest cost possible.
In the modern era (for non-authoritarian regime countries), this is incorrect assumption because workers need
hygiene in order to perform. Since no slave allowed, employers must pay "enough" so employees can work properly. Moreover, the market will determine whether the payment is acceptable or not and workers are free to choose their job.
The view about the capitalists are bad, is Marxist.
Nowadays, business owners understand if they want to build
sustainable business, they have to treat their workers humanely.
This is why illegal immigrants are paid below the minimum wage - because there is no barrier to prevent employers from doing so.
I'd argue the illegal immigrants are paid below
equilibrium point, because more bargaining power for employers. If there is no minimum wage and the workers are legal, it's going to be at the equilibrium.
By putting
barrier, a lesser number of unemployed will get the job. Perhaps someone somewhere cannot get a job (and cannot acquire new skills) at the moment because of this barrier.
Secondly, if a minimum wage is in place, then for a company to reduce wage costs they will have to look at reducing the wages of those higher up the chain, which helps to reduce inequality. I don't think they would achieve this by reducing headcount of the lowest paid employees, as in most (all?) industries these are the indispensable people who are actually doing the job, rather than those managing them and working at a level of abstraction.
Minimum wage is only applicable for low-skill jobs, if a worker has a high-skill job, he will earn more than the minimum wage anyway. We live in a world that values skill, and not sweats and tears. Therefore, this minimum wage will only price out young labors who have no real skill and no real work experience.
Because wages are
sticky instead of reducing wage, you will find the unemployment rate increases in any recession. The more skilled the worker, the more he becomes irreplaceable.
Thirdly, from the perspective of the wider economy it is healthier to employee 100 people at $10k per annum than it is to employ 1 person at $1m per annum - because rich people tend to hoard their wealth, whereas poor people spend it and keep it circulating.
Based on your logic, why not removing the minimum wage and employ 200 people at $5k per annum? +100 for job training, -100 for potential criminals.
Like I said mate, we need to rethink the assumption of "removing minimum wage thus the management will earn more."
as for the overall question of Marxism, I think it will lose relevance. A key premise is that the proletariat have a huge bargaining chip in that the employers need their labour.
Both workers and capital owners need each other. Capitalists will simply get out of the country and invest somewhere else if they see the costs/risks are too high to do business, in other words,
capital flight.